Bulgarian President Rumen Radev has vetoed a recently adopted amendment that would have required the State Agency for National Security (SANS) to approve any sale of Lukoil’s Bulgarian assets. The amendment, passed by Parliament on October 24, stipulated that the Council of Ministers could authorize such sales only after receiving a positive assessment from SANS.
The proposed changes to the Investment Promotion Act called for SANS to conduct preliminary due diligence and issue written evaluations before any transfer of ownership in Lukoil-Bulgaria, which operates more than 200 petrol stations, Lukoil Neftochim Burgas, the largest oil refinery in the Balkans, Lukoil Aviation Bulgaria, and Sustainable Energy Supply, a company involved in natural gas and hydrocarbon trading. The revisions were introduced by the GERB-UDF parliamentary group shortly after the United States imposed sanctions on Lukoil and its affiliates on October 22. These sanctions froze all assets of the affected companies under U.S. jurisdiction and prohibited American entities from conducting business with them without prior authorization. Lukoil’s majority ownership in its Bulgarian subsidiaries is held through the Swiss-based company Litasco, placing them within the scope of the sanctions.
President Radev argued that the law would have effectively subordinated the Council of Ministers to SANS, which he deemed unconstitutional. He explained that the Council of Ministers is responsible for directing national policy and maintaining security, while SANS functions as an advisory body under government oversight, not as a decision-making authority. Making ministerial actions dependent on SANS approval, Radev stated, would disrupt the constitutional balance within the executive branch.
The President also noted that Bulgaria already has a legal framework for national security screening of foreign investments that may pose risks. This system takes into account not only SANS assessments but also the input of the State Intelligence Agency and other relevant institutions. Introducing additional rules that apply exclusively to Lukoil and its subsidiaries, Radev warned, would violate European Union law and contradict the principles of the Statutory Instruments Act.
The veto temporarily suspends the implementation of the measure, sending it back to Parliament for reconsideration. Lawmakers can override the President’s veto with a simple majority vote, but the decision has already triggered a broader debate over how to balance national security oversight with constitutional governance.
